Wednesday, August 12, 2020


Keybot the Quant remains bullish. The bulls are running the show with the algo number 10 points above the signal line. Utilities failed yesterday dropping more than -2% slicing through the key UTIL 835.50 bull-bear line in the sand like a hot knife through butter. If you expect stocks to rally into year-end, the weakening utes may signal otherwise. Keep watching UTIL; if it drops below 8 hundo, that will lead to problematic outcomes for equities.

Bulls need UTIL back above 835.50 pronto, otherwise, the stock market will likely chop sideways with a downward bias.

Bears need to keep making utes weaker while also sending copper and commodities lower. Bears need GTX below 1701 and CPER below 17.25. The bull-bear lines in the sand are about 2.5% below current prices. Copper is down -0.8% so the bears still have work to do today.

If either GTX or CPER turns negative, either one would do, and the SPX drops below 3326, Keybot will likely flip short. S&P futures are up +22.22 points five hours before the opening bell in the US. VIX 22.666. 10-year yield 0.666%.

8/14/20; 10:00 AM EST =
8/11/20; 10:07 AM EST = +53; signal line is +43
8/9/20; 7:00 PM EST = +69; signal line is +43

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